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WARRANTS

9 Months Ended

Sep. 30, 2024

NOTE 15 – WARRANTS

During the nine months ended September 30, 2024, the Company entered into warrant exercise inducement offer letters with the holders of its existing warrants, pursuant to which it issued 106,906 shares of common stock and recorded an additional 1,609 shares to be issued for cash proceeds of $2,834,632, payment of legal fees $139,955, and were issued new warrants to purchase 183,632 shares of common stock at an exercise price of $30.6 per share. On March 18, 2024, the Company realized a deemed dividend of $1,444,324 for a deemed dividend for the reduction in the exercise price. On March 18, 2024, the Company realized an expense for the issuance of new warrants for the inducement of $3,029,927.

During the nine months ended September 30, 2024, the Company issued 92,442 warrants to purchase common stock to its financial advisor, for which it recognized an expense of $3,004,909 for the fair value of the warrants.

During the nine months ended September 30, 2024, and prior to the Reverse Stock Split, the Company issued 3,287,997 warrants to purchase common stock in connection with the security purchase agreements described above. The warrants have a term of 5 years and were granted with exercise prices between $30 and $45. The warrants contained dilutive issuance and split price protection clauses.

As a result of the Reverse Stock Split on May 31, 2024, the Company issued 18,270,405 additional warrants to purchase shares of common stock pursuant to the split price protection clauses contained within the warrants.

During the nine months ended September 30, 2024, 12,837,341 warrants were exercised on a cashless basis for 9,628,134 shares of common stock.

A summary of the warrant activity for the nine months ended September 30, 2024 is as follows:

SCHEDULE OF WARRANT ACTIVITY

	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2023		124,054		$	133.50		3.99	$	1,388,582
Granted		27,200,252		$	2.92
Exercised		(12,945,149	)	$	3.14
Cancelled/Exchanged		-			-
Outstanding at September 30, 2024		14,379,157		$	2.94		4.64	$	-
Exercisable at September 30, 2024		14,379,157		$	2.94		4.64	$	-

SCHEDULE OF WARRANT EXERCISABLE

Exercise Price		Warrants Outstanding		Weighted Avg. Remaining Life		Warrants Exercisable
$	1.50		688		3.84		688
	2.910		13,873,980		4.64		13,873,980
	3.64		504,489		4.70		504,489
			14,379,157		4.64		14,379,157

The aggregate intrinsic value of outstanding stock warrants was $0 based on warrants with an exercise price less than the Company’s stock price of $0.43 as of September 30, 2024 which would have been received by the warrant holders had those holders exercised the warrants as of that date.